There are currently 21,805 business entities operating in the restaurant sector in Slovakia, which could be helped in business by the reduction of value added tax (VAT) to ten percent from January. As of 2020, the number of companies in the gastro sector is the highest, having increased by approximately 900 entities during this period, according to the analysis of the consulting company Dun & Bradstreet.
However, the lower VAT is intended for companies with service and consumption directly on the premises of the company. Of the total number of companies, 10,127 are joint-stock companies and limited liability companies and 11,678 are self-employed. "Despite the increase in the number of entrepreneurs, it is true that the gastro sector is under severe pressure for the third year in a row. The high prices of energy, raw materials and other inputs force companies to raise prices on the one hand, and on the other hand, they lose customers who do not want or cannot accept the price increase It can have fatal consequences for some businesses," pointed out Dun & Bradstreet analyst Petra Štěpánová.
In the gastro sector, 2,885 entities disappeared over the last three years, of which 2,353 were self-employed. Štěpánová explained that most subjects, more than a third of all, disappeared last year. "We estimate that next year will be just as negative for gastroenterprises as the pandemic period," said Štěpánová. At the same time, however, she pointed out that this year alone, 710 new entrepreneurs and 508 companies were established in the restaurant business in Slovakia. In both cases, this is the lowest number since 2020.
Next year, restaurants, bistros, cafes and bars should be helped to some extent by the recently adopted reduced VAT, which will apply from January 2023. It will apply to businesses that serve food and drinks, but at the same time provide service, whether they have premises for consumption or washing-up. The reduced VAT in this case therefore applies to the provision of the service. Therefore, if a gastroenterprise serves food or drinks, but does not provide the other mentioned services, the reduced tax does not apply.
(TASR)
